Correlation Between Akr Corporindo and Campina Ice
Can any of the company-specific risk be diversified away by investing in both Akr Corporindo and Campina Ice at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Akr Corporindo and Campina Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akr Corporindo Tbk and Campina Ice Cream, you can compare the effects of market volatilities on Akr Corporindo and Campina Ice and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Akr Corporindo with a short position of Campina Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akr Corporindo and Campina Ice.
Diversification Opportunities for Akr Corporindo and Campina Ice
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akr and Campina is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Akr Corporindo Tbk and Campina Ice Cream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campina Ice Cream and Akr Corporindo is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Akr Corporindo Tbk are associated (or correlated) with Campina Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campina Ice Cream has no effect on the direction of Akr Corporindo i.e., Akr Corporindo and Campina Ice go up and down completely randomly.
Pair Corralation between Akr Corporindo and Campina Ice
Assuming the 90 days trading horizon Akr Corporindo Tbk is expected to generate 1.22 times more return on investment than Campina Ice. However, Akr Corporindo is 1.22 times more volatile than Campina Ice Cream. It trades about -0.15 of its potential returns per unit of risk. Campina Ice Cream is currently generating about -0.23 per unit of risk. If you would invest 135,000 in Akr Corporindo Tbk on August 30, 2024 and sell it today you would lose (12,000) from holding Akr Corporindo Tbk or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akr Corporindo Tbk vs. Campina Ice Cream
Performance |
| Timeline |
| Akr Corporindo Tbk |
| Campina Ice Cream |
Akr Corporindo and Campina Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akr Corporindo and Campina Ice
The main advantage of trading using opposite Akr Corporindo and Campina Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akr Corporindo position performs unexpectedly, Campina Ice can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Campina Ice will offset losses from the drop in Campina Ice's long position.| Akr Corporindo vs. Charoen Pokphand Indonesia | Akr Corporindo vs. Indocement Tunggal Prakarsa | Akr Corporindo vs. Bumi Serpong Damai | Akr Corporindo vs. Jasa Marga Tbk |
| Campina Ice vs. Bakrieland Development Tbk | Campina Ice vs. Bakrie Brothers Tbk | Campina Ice vs. Energi Mega Persada | Campina Ice vs. Sampoerna Agro Tbk |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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